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Waterway Industries had sales in 2021 of $5,589,600 and gross profit of $904,200. Management is considering two alternative budget plans to increase its gross profit

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Waterway Industries had sales in 2021 of $5,589,600 and gross profit of $904,200. Management is considering two alternative budget plans to increase its gross profit in 2022 Plan A would increase the unit selling price from $8.00 to $8.40. Sales volume would decrease by 102,750 units from its 2021 level. Plan B would decrease the unit selling price by $0.50. The marketing department expects that the sales volume would increase by 106,860 units. At the end of 2021. Waterway has 32,880 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 28,770 units. If Plan B is accepted, the ending inventory should be equal to 49,320 units. Each unit produced will cost $1.5 in direct labor, $1.3 in direct materials, and $1.2 in variable overhead. The fixed overhead for 2022 should be $1.557,690. Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal ploces, eg 52.70 J Compute the production cost per unit under each plan. (Round answers to 2 decimal places, e.g. 1.25.) eTextbook and Media Attempts: 0 of (d) Compute the gross profit under each plan (Round answers to O decimal ploces, es. 125)

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